Federal Register of Legislation - Australian Government

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Withholding Tax Instruments as made
This instrument varies to nil the amount that would otherwise have to be paid to the Commissioner when an authorised deposit-taking institution exercises the power of sale of Australian real property owned by a foreign resident and the proceeds of sale are insufficient to discharge the mortgage.
Administered by: Treasury
Registered 09 Oct 2020
Tabling HistoryDate
Tabled HR19-Oct-2020

Legislative Instrument

 

PAYG Withholding variation for foreign resident capital gains withholding payments – no residue after a mortgagee exercises a power of sale 2020

 

I, Louise Clarke, Deputy Commissioner of Taxation, make this variation under the following provision:

 

·                     subsection 14-235(5) of Schedule 1 to the Taxation Administration Act 1953.

 

Louise Clarke

Policy, Analysis and Legislation

Law Design and Practice

Dated: 2 September 2020

 

 

1.            Name of instrument

This determination is the PAYG Withholding variation for foreign resident capital gains withholding payments – no residue after a mortgagee exercises a power of sale 2020.

 

 

2.            Commencement

This instrument commences on the day after its registration on the Federal Register of Legislation.

 

 

3.            Application

This instrument applies to payments covered by section 14-200 of Schedule 1 to the Taxation Administration Act 1953, where, in a transaction involving the acquisition of land:

(i)            a mortgagee exercises a power of sale;

(ii)           the residue is zero or less than zero; and

(iii)          the mortgagee provides a written declaration to the transferee that the amount to withhold is varied to nil under this instrument.

 

 

 

4.            Determination

 

The amount to be paid by the transferee to the Commissioner in relation to the transactions covered by this instrument is varied to nil.

 

 

5.            Definitions

 

Mortgagee – a mortgagee in relation to the land that is also an ‘authorised deposit-taking institution’ as defined in section 5 of the Banking Act 1959.

Residue – an amount worked out as the sale proceeds less expenses incidental to the sale and amounts payable to registered mortgagees over the asset.

Transferee – the person acquiring the land as a result of the transaction.

Other terms used in this legislative instrument have the same meaning as defined in the Taxation Administration Act 1953.

 

 

6.            Repeals

 

None.